The Economy

May 11, 1985|By Deanne Brandon

1 SCENARIO. Villain: The federal deficit. Dirty deeds: It has put American goods at a disadvantage overseas, encouraged imports and kept the dollar high. Next episode: While a recession is unlikely this year or in 1986, a boom is not likely, either. The economy should grow at a rate of 3.1 percent this year but at a slower rate of just 2.2 percent in 1986. Who says so: Economists for top U.S. corporations. Their script: Presented at a meeting of the Business Council, which is made up of current and former top executives of the largest American corporations. To the rescue: ''The preferred solution to the trade deficit and trade debt problems of the United States is a significant tightening of the federal budget, in particular by curtailing spending,'' their report said.